This week, the Board of Supervisors Land Use Committee continued to hear the proposed Transportation Sustainability Fee (“TSF”). As we have covered in the past months, the TSF would replace the current Transit Impact Development Fee (TIDF) and would apply to both residential and non-residential projects. The TSF as proposed would establish a rate of $7.74/sf for residential uses, $18.04/sf for non-residential uses, and $7.61 for PDR uses. The TSF would apply to residential projects that result in more than 20 dwelling units, group housing facilities with more than 800 square feet, or the new construction or addition of a non-residential or PDR use greater than 800 gross square feet.
After two prior hearings, the Committee members voted on amendments to the proposed TSF at this week’s meeting. The approved amendments include the following:
– Eliminate the credit for projects located in area plans;
– Increase the threshold area at which PDR uses would be subject to TSF from 800 sf to 1,500 sf;
– Remove hospitals from the non-profit exemption to TSF;
– Exempt non-profit, post-secondary educational institutions from TSF;
– Increase TSF for residential and non-residential projects based on project size; residential projects of 1-99 units would continue to be subject to a rate of $7.74/sf, whereas for projects involving 100 units or greater, $7.74/sf would apply for first 99 units and $8.74/sf would apply for any units over the first 99; commercial projects under 100,000 square feet would continue to be subject to $18.04/sf, whereas commercial projects 100,000 square feet or greater would be subject to a rate of $19.04/sf
– Provide that grandfathering would not apply for residential or non-residential projects for which development applications were submitted after July 21, 2015
The TSF was continued to the October 19th Land Use Committee meeting.
Changes to Requirements for the Off-Site Alternative to Inclusionary Affordable Housing Program
Proposed changes to the off-site alternative to the Inclusionary Affordable Housing Fee were introduced in mid-September that are intended to encourage more projects to choose the off-site affordable housing option.
First, geography. Under the ordinance, off-site units may be built within 1-¼ mile from the primary project site or within the same neighborhood, as illustrated on the Planning Department’s neighborhood map. Currently, off-site units must be within 1 mile of the primary project site.
Second, the “dialing up” option. The proposal includes the option to increase income requirements in exchange for more required affordable units. Currently and in most situations, projects sponsors of new market-rate residential units are required to pay a fee, provide 12% of the total units for on-site affordable units, or 20% of the units as off-site affordable units. On-site rental units must be affordable to households earning 55% of AMI, and on-site ownership units must be affordable to households earning up to 90% of AMI. Whereas, off-site rental units must be affordable to up to 55% of AMI, and off-site ownership units must be affordable up to 70% of AMI.
The proposed changes would allow project sponsors increase income requirements, which would require an increase in affordable units. On-site units could be made available to households earning up to the following income amounts, so long as the accompanying percentage of units is made affordable:
– On-site Rental units:
- 55% of AMI: 12% of units,
- 70% of AMI: 13% of units, or
- 90% of AMI: 16% of units
– On-site Ownership units:
- 90% of AMI: 12% of units, or
- 120% of AMI: 15% of units
For units offered off-site, the options would be the following:
– Off-site Rentals units:
- 55% of AMI: 20% of units,
- 70% of AMI: 23% of units, or
- 90% of AMI: 30% of units
– Off-site Ownership units:
- 90% of AMI: 20% of units, or
- 120% of AMI: 31% of units
Lastly, timing. The legislation also increases the amount of time in which the off-site units could be constructed. Under the proposed ordinance, off-site units may be completed within one year of the primary project’s completion. Currently, the requirement is that the off-site units be completed concurrently or before the primary project receives its First Certificate of Occupancy.
The proposed ordinance was introduced on September 15th.
The issues discussed in this update are not intended to be legal advice and no attorney-client relationship is established with the recipient. Readers should consult with legal counsel before relying on any of the information contained herein. Reuben, Junius & Rose, LLP is a full service real estate law firm. We specialize in land use, development and entitlement law. We also provide a wide range of transactional services, including leasing, acquisitions and sales, formation of limited liability companies and other entities, lending/workout assistance, subdivision and condominium work.